Long-Term Care Myths Could Devastate Your Retirement Security
Long-term care myths continue to mislead Americans about one of retirement’s biggest financial threats. At ICT Insurance, our specialists in Wichita, Great Bend, and Overland Park have seen firsthand how these long-term care myths can devastate retirement savings and family finances. Nearly 70% of Americans over 65 will need some form of long-term care, yet dangerous long-term care myths prevent many from proper planning.
Let’s expose the 6 most damaging long-term care myths that could drain your retirement savings and leave your family financially vulnerable in June 2025 and beyond.
1. Long-Term Care Myth: “Medicare Will Cover My Long-Term Care Needs”
Perhaps the most pervasive long-term care myth is that Medicare provides comprehensive long-term care coverage. This long-term care myth leaves millions of retirees dangerously exposed.
The truth behind this long-term care myth:
- Medicare only covers skilled nursing facility care for up to 100 days following a 3-day hospital stay
- It provides zero coverage for custodial care—help with activities of daily living like bathing, dressing, and eating
- Medicare does not cover assisted living facilities
- Home health care coverage is limited to part-time skilled nursing care, not ongoing assistance
The cost of ignoring this long-term care myth? The average monthly cost for a semi-private nursing home room exceeds $8,800 nationally—entirely out-of-pocket once Medicare’s limited coverage ends.
2. Long-Term Care Myth: “Medicaid Will Protect My Assets While Providing Care”
Another dangerous long-term care myth involves Medicaid as an easy fallback option. Many people believe they can simply transfer assets to family members and immediately qualify for Medicaid long-term care coverage.
The truth behind this long-term care myth:
- Medicaid has a 5-year “lookback period” for asset transfers
- Transfers within this window may trigger significant penalty periods
- Many assets must be spent down before qualifying
- Income limits are extremely restrictive
- Home equity may be subject to estate recovery after death
Falling for this long-term care myth often leads to hasty, ill-advised financial decisions that can trigger tax consequences and leave you ineligible for both Medicaid and private care options.
3. Long-Term Care Myth: “Long-Term Care Insurance Is Too Expensive”
The long-term care myth that insurance is prohibitively expensive prevents many from even exploring coverage options. While premiums are significant, they pale in comparison to out-of-pocket care costs.
The truth behind this long-term care myth:
- Policies purchased in your 50s often cost 50-60% less than those purchased in your 60s
- Many policies offer inflation protection to ensure adequate coverage when needed
- Newer hybrid policies combine life insurance with long-term care benefits
- Tax advantages may apply to qualified long-term care premiums
- Partnership programs in many states provide asset protection equal to policy benefits paid
The average cost of long-term care insurance for a healthy 55-year-old ranges from $1,700 to $2,800 annually—far less than the $106,000+ average annual nursing home cost. This long-term care myth keeps many from securing affordable protection.
4. Long-Term Care Myth: “My Family Will Take Care of Me”
This emotional long-term care myth often goes unexamined until a crisis occurs. While family care is admirable, it comes with substantial hidden costs.
The truth behind this long-term care myth:
- Family caregivers forfeit an average of $304,000 in wages and benefits when caring for parents
- Nearly 70% of caregivers report significant work accommodations (reduced hours, early retirement)
- The physical and emotional toll on family caregivers is substantial
- Many care needs require professional medical training
- Modern families are smaller, more geographically dispersed, and often dual-income
This long-term care myth not only risks your care but can devastate your children’s financial security and family relationships.
5. Long-Term Care Myth: “I Can Self-Insure Through Savings”
Many affluent individuals subscribe to the long-term care myth that they can simply pay for care out-of-pocket through savings and investments.
The truth behind this long-term care myth:
- The average long-term care need lasts 2.5 years, costing over $250,000
- Nearly 20% of individuals require care for more than 5 years
- A couple with dementia/Alzheimer’s could face over $800,000 in long-term care expenses
- Market downturns near retirement can devastate self-insurance plans
- Self-insurance rarely addresses the care coordination and advocacy components
This long-term care myth fails to account for the severe depletion of legacy assets and disproportionate impact on surviving spouses.
6. Long-Term Care Myth: “I’m Healthy, So I Don’t Need to Plan Yet”
This timing-related long-term care myth leads to procrastination until health changes make coverage unattainable or prohibitively expensive.
The truth behind this long-term care myth:
- Health qualification standards become more stringent as you age
- Approximately 45% of applicants over age 70 are denied coverage
- Family health history impacts insurability
- Once diagnosed with conditions like Parkinson’s, MS, or early dementia, private coverage options disappear
- Each year of delay increases premiums by 8-12%
This long-term care myth is particularly costly—the best time to secure coverage is when you’re healthy, not when you anticipate needing care soon.
The Truth About Long-Term Care Planning in June 2025
As we enter June 2025, these long-term care myths continue to leave Americans unprepared for one of retirement’s greatest financial threats. At ICT Insurance, our long-term care specialists help clients navigate beyond these myths across Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, New Mexico, New York, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Wyoming.
Don’t let long-term care myths derail your retirement security. Our team of licensed insurance brokers can help you understand the real costs and coverage options available for your specific situation.
Ready to get the truth about long-term care planning? Contact our long-term care specialists today for a free, fact-based consultation to protect your retirement from these devastating myths.
This information about long-term care myths is current as of June 2025, but insurance regulations and options can change. Always consult with a licensed insurance professional for the most current information.
